On Friday the Ontario Lottery and Gaming Corporation (OLG) began the Request for Pre-Qualification (RFPQ) process to "pre-qualify service providers for specific day-to-day operation of gaming in Ontario."
The gaming Request for Information (RFI) that OLG released on May 17, 2012, identified 29 proposed Gaming Zones — or geographic areas — where qualified service providers would be permitted to operate a single gaming facility.
“We received more than 100 responses to our gaming RFI from a wide range of proponents, and we now have a better understanding of the change we are making as an organization,” said Rod Phillips, OLG President and CEO.
As a result of feedback from the RFI, and to "enable OLG to more effectively manage the gaming market in Ontario", OLG is grouping many of the 29 Gaming Zones into Gaming Bundles — each bundle representing a separate bidding opportunity. OLG is releasing its RFPQs in stages. The first wave includes three separate RFPQs, one for each of the following:
Ottawa Area (Zone E4)
East Gaming Bundle (Zones E1, E2, E3)
North Gaming Bundle (Zones N1, N2, N3, N4, N5)
Where the RFPQ is based on a Gaming Bundle, interested service providers are required to submit proposals for the entire Gaming Bundle as set out in the RFPQ, not for individual Gaming Zones or Gaming Sites contained within a Gaming Bundle. This means that for some RFPQs, including two of the three being issued today (East and North), service providers must demonstrate their ability to operate multiple facilities in a given region or geographic area of Ontario.
Service providers must also provide information on their financial and technical attributes and capabilities, including proof of successful experience with similar projects. In addition, service providers are asked to provide information on any experience and working relationship with First Nations or First Nations communities.
“This is the next step in our Modernization plan. We plan to have no more than one gaming site in each of the 29 Gaming Zones,” said Phillips. “Gaming Bundles will not result in the merging of current or proposed gaming sites, or of proposed Gaming Zones.”
OLG intends to issue separate RFPQs for the remaining Gaming Zones, many in Gaming Bundles, over the next several months. Details pertaining to upcoming RFPQs, including the composition of additional Gaming Bundles are still being finalized based on feedback OLG received from the RFI process.
The RFPQ process for gaming is the next step in OLG’s Modernization plan. This step will enable OLG to prequalify applicants who would then be eligible to participate in the Request for Proposal (RFP) process.
OLG has two impartial advisors providing oversight on the integrity and fairness of the procurement process.
According to the release, the OLG predicts that in five years it will "contribute an additional $1.3 billion per year to key public priorities and usher in more than $3 billion dollars in new capital investment in Ontario. In addition, thousands of jobs will be created across the province (emphasis added)."
The OLG has come under fire from the horse racing industry for abandoning its slots-at-racetracks program, one of the best value-for-money programs for the provincial government over the past decade. The industry contributes 60,000 jobs, $1.1 billion to the provincial government and $2 billion in recurring expenditures – all of which stand to be lost to the province when the Slots at Racetracks Program ends in April 2013.
According to the RFPQ for the Ottawa Area (Zone E4) a casino in the nation's capital would house a maximum of 2,000 slot machines and 600 seats at table games. All revenues from the gaming side of the operation would "flow into OLG bank accounts" while the site operator would keep all revenues from any "non-gaming amenities" at the site. The OLG would then pay the Service Provider "a fee that is intended to provide a reasonable financial return", a $30-million fixed component, a variable component based on a percentage - likely 70 percent - of Gaming Revenue generated above a threshold for the Gaming Bundle, and a variable component based on Gaming Revenue earned from international VIP play.
The East Gaming Bundle (Zones E1, E2, E3) includes the areas around Peterborough, Belleville and Kingston. The structure of the deal with the OLG and the site operator would be similar, with a $25-million fixed component and 70 percent variable component. This split is the same as the RFPQ for the North Gaming Bundle (Zones N1, N2, N3, N4, N5) encompassing the zones for Sudbury, North Bay, Sault Ste. Marie, Thunder Bay and Kenora.
In instances where OLG gaming is currently located at racetracks, the OLG notes that it may need to relocate the gaming site "unless an extension to the agreement or a new Racetrack Premises Lease is finalized prior to the RFP submission deadline."
Interested service providers must respond to the first three RFPQs by March 7, 2013. OLG will issue the RFPQ for the modernization of lottery shortly. The RFPQ summaries are posted below.
got to hope that by March 7th
got to hope that by March 7th the RFPQ's deadline that the writing will be on the wall for the Liberals,
There is not too much profit
There is not too much profit to be made on table games(Blackjack, Roulette,Bacarat, etc)in a casino.Maybe a 2 or 3 percent profit return after paying salary's, pension's, benefits,etc, etc,.. That being said, Ontario should allow mini casino's at all B tracks, and major casino's like at Woodbine and Mohawk. A logical solution to keep the horse industry alive. Goodluck!
Am I getting this straight -
Am I getting this straight - If a track wants to keep the slots, it has to submit a request to do so and must prove they have had previous experience in casino gaming and have been showing a good profit. Not that the tracks are going to share in the profits either way.
The bundling of zones pretty
The bundling of zones pretty much guarantees that no tracks will be operating slots facilities. They are not in a position to operate regionally beyond their own facilities. This pretty much gives the foreign interests and Tannenbaum a free ride on the RSP process with no competition from existing track owners. Even if they sign an agreement they have no chance to keep the slots at their tracks under their own control. This just buys time and revenue for the OLG. Time for the track management to wake up and realise they have nothing to lose by shutting down the slot parlours at the end of March and depriving the Government of the $1.4 billion annual revenue. With no money coming in and mounting losses at the existing casinos the OLG will simply implode.
Shut the slots down! Hit them
Shut the slots down! Hit them in the pocket book. I'm sick of all the delays and false hopes. Where is the panel! Thought something was supposed to be released Dec 1st.
All smoke and mirrors to make
All smoke and mirrors to make OLG appear to be the almighty in control. Time for McGuinty to rein in Godfrey / OLG . It is out of control.
Probably why nothing has been
Probably why nothing has been heard from the government about the interim support to be offered to racing during the transition. If the tracks refuse to agree to leases, watch how little is offered to racing. Another way to keep racing hostage and contributors to its own demise.
All I see here is a lack of
All I see here is a lack of vision and assumptions that are unrealistic in a market that is getting more and more saturated. Municipalities are getting screwed by not getting profits from table games and really should be getting 5% of ALL profits PERIOD. Very little of the money taken by the OLG will stay in the local economies.
However the most unfortunate is the timing and current economic conditions will make this most expensive venture into a waste of money. Sad that Ontario taxpayers and future generations will be on the hook. The OLG (liberals) seem to think that building Vegas North will work. Very sad day for the Ontario society.
Who is forcing them to keep
Who is forcing them to keep the slots? They can offer racing only if they want or get out of the business.
"In instances where OLG
"In instances where OLG gaming is currently located at racetracks, the OLG notes that it may need to relocate the gaming site "unless an extension to the agreement or a new Racetrack Premises Lease is finalized prior to the RFP submission deadline.""
Another ploy to force Tracks to keep the Slots going (with virtually no benefit to the Horse Racing Industry) while the OLG takes YEARS to get their new Casinos up and running - pathetic !